[susu123]

65%. When I walked out of the exam centre, I thought I must have failed but the result turned out I actually passed quite comfortably. I am always too pessimistic. I used BPP text, revision kit and opentuition notes.

[susu123]

Just want to make sure I understand you.
Say, A Ltd’s profit before tax is £100,000, the expenses that have been deducted in the calculating this figure include the following:

Depreciation:£10,000
Director’s bonus: £10,000
Entertaining customers: £10,000

Profit before tax______________100000
Depreciation________________10,000
Director’s bonus________________-
Entertaining customers_________10,000
Adjusted profit________________120,000
Is that right?

Many thanks

[susu123]

So although it is classified as property income, it will never join the property income from other properties.

Secondly although their losses are treated like trading losses, it will never join trading profit from other businesses either.

It will always have its own row in income tax computation in the form of either FHLs income or current year relief-FHLs or carryback relif-FHLs to offset total income or carryforward relief-FHLs to offset future FHLs income.

Is that right? Thanks so much.

[susu123]

Hi,

In the question, it says
1. The interest of 600 was from certificate, therefore exempt.
2. The donations were to local charity. The question specifies they were not made under gift aid, therefore they don’t affect adjusted net income.

4500+2300+(14400*100/80)=24800
(24800-22900)=1900
9490-(1/2*1900)=8540

You can find 1900 in the answer and then suddenly it turns into 2200 in the book. However the final answer on BPP is right, adjusted PAA=8540. Maybe last year, they set the question like the way Yvonne did it above and then they changed it this year, but they forgot to change 2200 into 1900. The final answer is right. No wonder I didn’t spot the 2200.

[Author]

Posts